Business Decision Making: Investment Appraisal Techniques for Akwaaba Plc

Essay on Business
Decision Making

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Determine the value of Payback Period of Akwaaba Plc:..........................................................3
Determine the value of Net Present Value of Akwaaba Plc:......................................................4
Describe Financial and non-financial factors which is used in decision making........................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
In every organization business forecasting and decision making are important, different
enterprises uses different techniques to implement the proper plan. In this report, the Investment
appraisal techniques are described on behalf of the Akwaaba Plc, it is a company which is
running their business in the field of textile and it is located in the part of UK .The following
report is useful for the company in investment decision making and future growth and
development with the helpful investment appraisal techniques (Ali., 2020). This techniques
include two types of calculation that are Payback period and Net present value. After this
company is helpful in analysing that which project is better for the business in making the future
profitability . It is also consist two factors which affect affect the company financial decisions
such as financial and Non- financial factors.
TASK
Determine the value of Payback Period of Akwaaba Plc:
The business enterprises generally uses the some tool to take a proper and useful
judgement for future. Most commonly all the organization uses investment appraisal technique to
implement the plan of action (Hensher., 2020). This method contain two types of calculations
such as Payback period and Net present Value.
Payback Period: It is the tool or technique which is useful for computing the average time
consumed by the project to return the initial investing (Arafat., Iqbal and Hadi., 2020). It is
calculated for the purpose of investing and it is taken place basically by investors and
stakeholders. In below pay period value are figure out on behalf of the company Akwaaba Plc:
Year Project A – Bags
Net cashflow £
Cash flow Cumulative cash flows
0 -180000 0
1 48,000 48000
2 62,000 110000
3 85,000 195000
4 1,00,000 295000
5 1,10,000 405000